GEMALTO

Social Media Companies Believed to Be Vulnerable, with 61% of Consumers Saying They Pose Greatest Risk for Exposing Data, Finds Gemalto

A majority of consumers are willing to walk away from businesses
entirely if they suffer a data breach, with retailers most at risk,
according research from Gemalto, the world leader in digital security.
Two-thirds (66%) are unlikely to shop or do business with an
organization that experiences a breach where their financial and
sensitive information is stolen. Retailers (62%), banks (59%), and
social media sites (58%) are the most at risk of suffering consequences
with consumers prepared to use their feet.

Surveying 10,500 consumers globally, Gemalto found that, across all
ages, 93% are placing the blame squarely on businesses and would think
about acting against them. Social media sites worry consumers most, with
61% concerned companies in this space don’t adequately protect consumer
data, followed by banking websites (40%).

Companies held responsible as consumers act

With the rising awareness of data protection and data privacy issues,
consumers now believe the majority (70%) of responsibility for
protecting their data rests on the company holding it. This has made
data protection a major consideration for consumers when interacting
with a brand, with 82% wanting organizations to have greater online
security measures. These concerns are prompted by 91% believing that
there are applications and websites they currently use which pose a risk
to the protection and security of their personal identifiable
information (PII).

Despite consumers placing the responsibility firmly in the hands of
organizations, only a quarter feel as though companies take the
protection and security of customer data very seriously. Taking matters
into their own hands, consumers are not giving businesses anywhere to
hide, as the majority of respondents have either already provided
organizations with feedback on what security methods they are offering
(35%), have considered it (19%) or might in the future (33%).

“Businesses have no choice but to improve their security if they want to
address frustrated consumers that don’t believe the onus is on them to
change their security habits,” says Jason Hart, CTO, Data Protection at
Gemalto. “Social media sites in particular have a battle on their hands
to restore faith in their security and show consumers they’re listening
– failing to do so will spell disaster for the most flagrant offenders,
as consumers take their business elsewhere.”

A troubled past and frustrated future for consumers

It’s unsurprising that consumers are frustrated with the state of data
protection within organizations. A quarter of those surveyed have
already been a victim of fraudulent use of their financial information
(26%), 19% through fraudulent use of their PII, and 16% of identity (ID)
theft. Worse, consumers have no faith that things are going to improve,
as two-thirds (66%) are worried that at some point in the future their
personal information will be stolen.

Even with the fear that they may become victims of a data breach,
consumers aren’t planning to change their behaviour online as they
believe responsibility lies with the companies holding their data. This
could explain why over half (55%) of respondents continue to use the
same password across different accounts.

In addition to switching brands, young people are more prepared to go
further and participate in legal action against brands that lose their
data than older generations. Nearly seven in 10 (67%) 18-24-year olds
revealed they would take fraudsters and brands that suffered a breach to
court, compared to just 45% for 65s and over, with a further 28% of
generation z (18-24 year olds) at least considering it.

“This should be a wake-up call to businesses that consumer patience has
run out. It’s clear they have little faith that organizations are taking
their data protection seriously, or that their concerns will be heard,
forcing them to take action themselves,” Hart continues. “As young
people become the big spenders of the future, businesses are risking not
only alienating their current and future revenue streams but also their
reputation if they continue to give the impression that they don’t take
data security seriously. Moving forward businesses must start doing the
basics properly; protecting their most valuable asset, data, with the
correct security controls.”

About Vanson Bourne
Vanson Bourne is an independent
specialist in market research for the technology sector. Their
reputation for robust and credible research-based analysis is founded
upon rigorous research principles and their ability to seek the opinions
of senior decision makers across technical and business functions, in
all business sectors and all major markets. For more information, visit www.vansonbourne.com

About Gemalto

Gemalto (Euronext NL0000400653 GTO) is the global leader in digital
security
, with 2017 annual revenues of €3 billion and customers in
over 180 countries. We bring trust to an increasingly connected world.

From secure software to biometrics and encryption, our technologies and
services enable businesses and governments to authenticate identities
and protect data so they stay safe and enable services in personal
devices, connected objects, the cloud and in between.

Gemalto’s solutions are at the heart of modern life, from payment to
enterprise security and the internet of things. We authenticate people,
transactions and objects, encrypt data and create value for software –
enabling our clients to deliver secure digital services for billions of
individuals and things.

Our 15,000 employees operate out of 114 offices, 40 personalization and
data centers, and 35 research and software development centers located
in 47 countries.